HUD’s NEW SHORT SALE rule eliminates Double Agents

HUD has new Short Sale rules effective Oct 1, 2013…

HUD’s new short sale rulesThe new HUD rule will prohibit brokers and agents from representing both buyers and sellers in FHA SHORT SALES. To ensure that short sale transactions are “arm’s length” brokers and their agents may represent only the buyer or the seller but not both parties. Even HUD knows that “dual agency” is not a good thing…

Under this new policy, if a Real Estate office chooses to list an FHA short sale, none of the other agents under that broker can bring a buyer to the property. It is really great that even HUD understands the conflict of interest that results in having a “double agent” on the transaction.

This is good news for home buyers! Home buyers making Short Sales offers, are at a disadvantage when the listing agent has their own buyer, and can make double the commission by claiming to represent both parties and keeping the deal “in house”. I think this HUD rule is overdue, will level the playing field and I am glad to see it.

Also, HUD’s cost booklet for Home Loans, (on page 6) says it is the buyers responsibility to search for an agent that will represent your interests in the real estate transaction. HUD goes on to say “If you want someone to represent only your interests, consider hiring an “Exclusive Buyers Agent” who will be working for you…